PTA Supports Reducing Mobile Phone Taxes, Clarifies FBR Collects Duties, Not PTA

The Pakistan Telecommunication Authority (PTA) has voiced support for reducing the high taxes levied on mobile phones imported into Pakistan, highlighting that this move aligns with long-standing public demands. PTA’s Director General Licensing, Brigadier (Retd) Amir Shahzad, emphasized that excessive taxation on mobile devices has negatively affected multiple stakeholders, including consumers, retailers, and industry representatives, creating a barrier to the adoption of modern digital technologies.

Speaking at an AI conference, Brigadier (Retd) Shahzad clarified a common misconception among the public regarding mobile phone taxes. He stated that the PTA does not have the authority to impose or collect taxes on mobile phones. Instead, the Federal Board of Revenue (FBR) holds sole responsibility for levying duties, sales taxes, and registration fees. The DG Licensing stressed that despite their influential roles, PTA officials themselves are equally subject to these taxes and do not receive any free devices or exemptions, purchasing phones like ordinary citizens.

The issue of high mobile phone taxes has also been raised by policymakers. Member of National Assembly Syed Ali Qasim Gilani expressed concerns over the burden imposed on consumers and urged the Standing Committee on Finance to review the existing taxation system. He pointed out that import duties, sales taxes, and registration fees have significantly increased the cost of mobile devices, particularly those valued above USD 500, which are subject to a 25 percent sales tax and an 18 percent general sales tax. According to Gilani, these high charges not only restrict access to advanced mobile technology but also hinder digital development in the country.

The public, including overseas Pakistanis, has echoed similar concerns, stating that the current taxation rates make it difficult and expensive to register and use mobile phones imported from abroad. PTA’s endorsement of reducing taxes reflects an understanding of these challenges and signals potential policy reforms that could make mobile technology more accessible, promote digital inclusion, and support technological advancement across Pakistan.